Collection agency given un billed debt

by Steven

I was in an auto accident and was uninsured. I paid both drivers directly for their personnel losses and expenses. I struck twp parked vehicles, I paid one of the insurance companies out right. The second claimed that the damage to the car was $3,604 dollars. I talked to them and was told that I could make payments to them. The next I was heard less than a month later was from a very rude collections agency. I began making payments to them and on the third payment I noticed that the balance owed was over $10,000 dollars. When I called and asked if this was a mistake I was told the insurance company had had additional expenses and I owed it. When I asked for proof of the expenses and an assurance that they would not continue to add debt I was told that I just needed to pay what I owe and hung up on.
Is this correct?

Comments for Collection agency given un billed debt

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Dec 09, 2011
Collection agency given un billed debt


Did the collection agency send you a written statement after it contacted you for the first time about the debt that you owe? The federal Fair Debt Collection Practices Act (FDCPA) says that if the collector contacts you by phone initially, it must not only provide you with very specific information during that initial phone call but it must also send you certain information in writing within 5 days of that call. You may have grounds for a lawsuit if the collector did not comply with the law, but you should consult with a consumer law attorney to be sure.

I recommend that you send the collection agency a letter asking for a clear accounting of what you owe. Make a copy for your files and send the letter certified mail with a return receipt requested. If the agency responds and you still do not understand why you owe $10,000, send another letter asking for clarification. If you do not get it, I recommend that you contact a consumer law attorney to discuss your options, consumer law attorney

If you do receive clarification, understand why you owe $10,000 and want to pay the money over time, do not pay anything until you have a written agreement with the collection agency. A verbal agreement won't suffice. To protect yourself, get it in writing.

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